capitalnoun

SMART Vocabulary: related words and phrases

Interest & capital
annualized
APR
bank rate
base rate
capital intensive
coffer
compound
concessional
finance
interest rate
interest-bearing
lending rate
money
non-derivative
Premium Bond
reserve
simple interest
sinking fund
stock
the purse stringsidiom

working capital | Business English

working capital
noun[ U ]
ukus(alsocirculating capital); (alsooperating capital)
ACCOUNTING, FINANCE, WORKPLACE
the money that a company needs to operate and produce its goods or provide its services, for example to make payments to employees, suppliers, etc. before it has been paid by customers:
Companies need large amounts of working capital in order to operate and grow.
The joint venture will cost the group just $200,000 in working capital.
a reduction/shortfall/increase in working capital
provide/raise working capitalAn additional £820m revolving credit facility will provide working capital.

Examples of working capital

working capital
Similarly, the organic hazelnut producers used about 30% more workingcapital per area compared to the conventional producers.
The workingcapital is similar to the patterns of initial investment.
Thus, they could obtain workingcapital, sometimes amounting to a substantial sum.
A further £500,000 in debentures was raised to clear the debts of the old company and provide workingcapital for the new one.
In addition to start-up financing needs, interviewees note that lack of access to workingcapital is a problem.
From 1997 moving forward workingcapital levels have seen drastic decline especially in 2000.
The opportunity cost of workingcapital is computed at 10 per cent.
Initial workingcapital stock in place for new tech.
Initial workingcapital stock in place for old tech.
We allow for workingcapital by assuming that a fraction of the intermediate firms' wage bill has to be financed in advance through loans from a financial intermediary.
The challenge is to source sufficient starting capital and avoid the ever-present danger of running down one's workingcapital by using it for necessary consumption rather than business operations.
It could be used flexibly as part of the farming area, or as a source of income through renting, or alternatively as security for loans raised to increase workingcapital.
Particularly for a short-term tenant it must have been difficult to procure his workingcapital or to obtain any credit without the presence of a well-functioning capital-market.
Farm families themselves financed most of the growth of primarily labour-intensive rural industries, much of which required primarily shortterm borrowing for workingcapital, rather than investing heavily in fixed capital.
And, finally, when husbands are unemployed or underemployed, a high proportion of women's earnings are spent on household expenses instead of being accumulated and used as investment and workingcapital.
See all examples of working capital
These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.